Firms face pres­sure to stay in black

In­dus­trial en­ter­prises wit­ness slow­ing growth amid prof­itabil­ity head­winds

China Daily (Latin America Weekly) - - Front Page - By XIN ZHIMING and WANG YANFEI

Profit growth among China’s ma­jor in­dus­trial firms slowed in Septem­ber, lead­ing to a weaker 14.7 per­cent yearon-year profit ex­pan­sion from Jan­uary to Septem­ber, down 1.5 per­cent­age points com­pared with the first eight months, an­a­lysts said.

They added that en­ter­prises will con­tinue to face heavy profit head­winds in the fourth quar­ter, al­though the over­all econ­omy re­mains on track.

In Septem­ber alone, yearon-year profit growth of in­dus­trial firms was 4.1 per­cent, down from 9.2 per­cent in Au­gust, the Na­tional Bureau of Sta­tis­tics said on Satur­day.

Ma­jor in­dus­trial firms, or above-scale en­ter­prises, are those with over 20 mil­lion yuan ($2.9 mil­lion) in an­nual sales rev­enue.

The weak Septem­ber data was mainly driven by a pull­back in prod­uct prices as well as a high com­par­a­tive base from last year, NBS of­fi­cial He Ping said in a state­ment.

But the ef­fi­ciency of ma­jor in­dus­trial firms im­proved with higher prof­itabil­ity and lower costs, ac­cord­ing NBS data.

Al­though in­dus­trial prof­its rose at a slower pace, in­dus­trial com­pa­nies’ op­er­at­ing costs and lever­age ra­tios both fell, while their prof­itabil­ity con­tin­ued to im­prove, He said.

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